Why Manchester United’s Financial Fair Play Dilemma Could Delay Erik ten Hag’s Departure
Manchester United’s Financial Constraints
Manchester United’s potential dismissal of Erik ten Hag, the Dutch manager, could be hampered by financial considerations, as per the Premier League and UEFA’s spending regulations. If the club decides to part ways with ten Hag before the conclusion of the ongoing season, they would be obligated to pay out the remaining 14 months of his contract. Given the recent dismal performance of Manchester United, particularly their 4-0 loss to Crystal Palace, the likelihood of ten Hag’s departure seems high.
The Increasing Uncertainty Surrounding ten Hag
The defeat at Selhurst Park has intensified the uncertainty surrounding ten Hag’s future at Manchester United. Former club Ajax is reportedly monitoring the situation closely, considering a potential reunion with the Dutchman.
Speculations on Replacement Managers
Various high-profile managers have been linked with replacing ten Hag, including Gareth Southgate, Roberto De Zerbi, and Thomas Tuchel. The speculation indicates the growing anticipation of a managerial change at Manchester United.
Financial Implications of ten Hag’s Contract
Erik ten Hag commands a salary of £9 million per year at Manchester United. However, due to a clause in his contract, this figure is set to decrease to £6.75 million next season due to the club’s failure to qualify for the Champions League. Consequently, delaying ten Hag’s dismissal until after the current season could potentially save Manchester United £2.25 million.
Financial Fair Play Considerations
The financial repercussions of ten Hag’s pay-off could jeopardize Manchester United’s compliance with Financial Fair Play regulations. The club’s precarious Financial Fair Play status might incentivize them to retain ten Hag until the end of the season, thereby avoiding immediate financial repercussions.
United’s Financial Position
Manchester United has incurred losses exceeding £200 million over the past three seasons. While their return to Champions League football in the 2023-24 season is expected to improve their financial performance, the club is still projected to report a deficit in their accounts. Immediate dismissal of ten Hag would alleviate fan pressure but could result in a reduced cost of £6.75 million being spread over the next three-year Financial Fair Play cycle.
Potential Budget Adjustments
With the absence of lucrative Champions League earnings in the upcoming season, Manchester United may need to adjust their budget accordingly. Nevertheless, the departure of high-earning players and cost-cutting measures by new part-owner Sir Jim Ratcliffe could provide the financial flexibility to accommodate ten Hag’s pay-off without breaching Financial Fair Play regulations.
Read also: Manchester United ‘make Erik ten Hag sack decision’ after Crystal Palace defeat